Australian Ethical Amps Up Engagement with QBE Regarding Fossil Fuel Insurance Operations
In a bid to promote sustainable investments, Australian Ethical, a leading superannuation fund and investment manager, has been actively engaging with Australian insurer QBE over its continued fossil fuel underwriting. This engagement, which dates back to 2016, has now been taken into the public realm following QBE's 2025 annual general meeting.
The core of Australian Ethical's concern lies in QBE's underwriting of fossil fuel projects, which they believe goes beyond science-based climate guidelines. Amanda Richman, the ethical stewardship lead at Australian Ethical, has expressed concerns about whether QBE's board and management are making decisions in the insurer's long-term interests.
Australian Ethical argues that insurers should not allow underwriting that enables fossil fuel expansion beyond what is consistent with climate science. They have publicly challenged QBE on this stance, urging the company to align its underwriting practices with climate risk management and the transition to clean energy.
In 2023, Australian Ethical escalated its engagement by voting against the re-election of QBE's directors, including its chair, on grounds of fossil fuel underwriting. This move was a response to QBE's policy of continued and unrestricted fossil fuel underwriting, which Australian Ethical believes is unjustified.
Despite increasing calls from investors like Australian Ethical for greater transparency, disclosure, and science-aligned underwriting policies, QBE has not yet fully aligned with these expectations. The insurer currently faces scrutiny for its continued support of fossil fuel-related underwriting.
Amanda Richman has also questioned whether increasing premiums to protect QBE's earnings from climate risk is a viable solution due to a natural ceiling. She is calling on QBE to disclose how much of its current underwriting it expects to exit over the next three decades due to climate change.
Australian Ethical is not alone in its criticism of QBE. Nearly 50% of QBE's underwriting portfolio is in property and agriculture, sectors exposed to physical risk due to climate change. This has led to concerns about shareholders not getting access to the necessary information about QBE's climate risk management.
In 2019, Australian Ethical co-filed a shareholder resolution at QBE, leading to the announcement of a coal exposure phase-out. However, the engagement with QBE regarding fossil fuel underwriting continues, with Australian Ethical vowing to escalate engagement further in its 2025 stewardship report.
QBE's holdings in Australian Ethical's portfolio are worth $56 million. Despite this, Australian Ethical has maintained its stance, emphasising the importance of aligning business practices with climate science for long-term sustainability and profitability.
[1] Australian Ethical. (2025). 2025 Stewardship Report. Retrieved from https://www.australianethical.com.au/wp-content/uploads/2025/06/AE-Stewardship-Report-2025.pdf
[2] Australian Ethical. (2023). Australian Ethical Vote Against QBE Directors Over Fossil Fuel Underwriting. Retrieved from https://www.australianethical.com.au/news/2023/australian-ethical-vote-against-qbe-directors-over-fossil-fuel-underwriting
[3] The Guardian. (2022). Insurers Under Pressure to Halt Fossil Fuel Underwriting. Retrieved from https://www.theguardian.com/environment/2022/may/23/insurers-under-pressure-to-halt-fossil-fuel-underwriting
- Australian Ethical suggests that insurers, like QBE, should curb underwriting practices that breach science-based climate guidelines, as these financing decisions can pose risks to the long-term interests of the companies and the environment.
- In the pursuit of climate science-aligned business practices, Australian Ethical has engaged with QBE over its continued fossil fuel underwriting and has urged the insurer to align its underwriting practices with climate risk management and the transition to renewable energy, as part of their commitment to environmental-science and sustainable finance.
